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Brazil Senate to vote on austerity amid protests

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AFP Brasilia
Brazil's Senate was to vote today on a 20-year government spending freeze billed as the centerpiece of austerity reforms that have provoked violent protests.

Police were preparing a big operation in the capital Brasilia to protect government buildings from demonstrators during the upper house vote.

The spending cap would be locked into the constitution and is the central plank in proposals by center-right President Michel Temer to get Brazil's finances back under control and attract investors who fled because of Brazil's ongoing recession.

However, Temer is rapidly losing political clout as he and many of his senior allies fight to survive a slew of corruption allegations.
 

Brazilians battered by nearly 12 per cent unemployment and stubbornly high inflation are increasingly angry over the scandals and hostile to the austerity measures.

A poll published today showed that 60 per cent of Brazilians oppose the spending ceiling. Only 24 per cent are in favor, the Datafolha poll published in Folha newspaper said.

When the Senate held a first vote on the measure two weeks ago, protesters fought riot police outside, burning cars and smashing windows.

There have also been violent clashes recently in Rio de Janeiro where less than four months after hosting the Olympic Games, the nearly bankrupt state government is pushing through its own spending cuts.

Temer, in an attempt to claw back public support, has unveiled stimulus measures that would attempt to give a short term boost to the ailing economy, the largest in Latin America.

But his entire government is struggling in the face of allegations tying senior figures and the president himself to the giant embezzlement and bribery probe centred on state oil company Petrobras.

Temer came to power last August after the impeachment of leftist president Dilma Rousseff. As her former vice president, Temer was appointed to the post automatically for the rest of her term through 2018.

Temer said he would focus on ending the political and economic chaos that had doomed the Rousseff government.

However, the latest poll from Datafolha shows 63 per cent of Brazilians want him to resign to allow early elections.

Only 10 per cent said they thought his government is doing a good job.

Disclaimer: No Business Standard Journalist was involved in creation of this content

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First Published: Dec 13 2016 | 7:13 PM IST

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